New Generation Whole-Life Costing
Property and Construction Decision-Making Under Uncertainty
Routledge – 2006 – 224 pages
New Generation Whole-Life Costing presents an innovative approach to decision-making and risk management for construction and real estate. It applies the options-based approach that has revolutionized the management of uncertainty in the business world. Based on government-sponsored research at Cambridge Architectural Research Ltd., the book introduces the idea of 'lifecycle options'.
The desirability of whole-life costing is widely accepted, but take-up levels have been low. One problem is that traditional techniques fail to take account of future uncertainty. In contrast, the new options-based approach considers a diversity of possible futures, and favours flexible strategies that incorporate lifecycle options. This approach leads to more cost-effective and sustainable decisions, minimizing the risk of under- or over-investment.
This book is structured around realistic case studies that demonstrate the prevalence of lifecycle options. These case studies are backed up by clear presentation of basic principles and mathematical techniques allowing the book to be read either as a stimulating introduction to new concepts, or as a guide to mathematical methods.
'The book certainly brings to attention the merits of WLC and how surprising the current lack of use of WLC techniques in the industry is.' - David Adamson (Director of Smarter Construction, Office of Government Commerce)
'A real breath of fresh air and a source of some important new ideas.'
'Whole-life costing could be as dull as the worthy ISO standard. This book is visually a delight … the narrative is full of lively examples and visual snapshots of case studies. Thoroughly recommended for courses … and clients and agents and designers alike.' - David Fisk (Professor of Engineering for Sustainable Development, Imperial College, London)
'The book is full of many good ideas … I would recommend it to property managers and surveyors involved in value management.' - David Wright (Associate at Currie & Brown)
'A very interesting and rich perspective that will assist practitioners in taking a longer-term view. …An extremely pleasant and accessible book.' - Niklaus Kohler in, Building Research & Information
1. The Rationale for Project Evaluation 2. Evaluating Long Term Projects 3. Evaluating Risk Projects 4. Data for Whole-Life Costing 5. Lifecycle Options 6. The Option to Develop 7. The Option to Expand 8. The Option to Switch Use 9. The Option to Reconfigure 10. The Option to Refurbish 11. Options on New Technology 12. Very Long Term Projects 13. Long-Term Budgeting under Uncertainty 14. Self-Assessment Matrix for Whole-Life Evaluation. Where to Find Out More
Ian Ellingham is an associate of Cambridge Architectural Research Ltd., UK.
William Fawcett has held a lectureship at the University of Hong Kong and was one of the founding directors of Cambridge Architectural Research Ltd. He holds the Chadwick Fellowship in Architecture at Pembroke College, Cambridge.